Good moves in the market today. The market seemed pessimistic at first towards the USD but later on decided to rally towards the north with the release of positive preliminary GDP figures and Mr.Bernanke’s testimony. There are 4 pairs im currently interested in.
Eur.Usd and Usd.Chf
Eur.Usd shows pressure towards the south as the bulls failed to make a new high and while the bears took out support levels. A further move south is expected at this point, small support can be found around 1.3289 and a bigger support level at 1.3200 area. The support at 1.3200 area should also roughly be around the outer trendline. This will be a crucial area for the bulls to take over control and continue to rally north, if they fail we can potential see this pair drop another 200 points.
Usd.Chf formed a nice double bottom and the bulls are currently rallying north. Strong resistance levels can be found around 0.9100 area and take caution around that downward trendline, If resistance hold look for a u-turn towards the south. On the flip side if this pair breaks through resistance we will most probably see it trading in the channel again between 0.9100 and 0.9130 area.
Eur.Gbp and Gbp.Chf
Both pairs had nice moves today. Eur.Gbp got hammered by the bears and is currently back into the channel. The channel is between roughly 0.8277 and 0.8411 area. Iam fairly confident this pair will trade towards the bottom of the channel before finding strong support. On the other side of things, Gbp.Chf had an aggressive move north and is also back into the channel. This channel is between 1.4378 and 1.4588 so about 200 pips. I expect a further move north on this pair towards the top of the channel.